July 21, 2021

SMART FAQ About Maryland Transfer and Recordation Taxes

SMART FAQ About Maryland Transfer and Recordation Taxes

DISCLOSURE: The facts provided in this article are for informational purposes only and are deemed accurate at the time it was published. To see the most current rates and information, visit the state or county websites.

What is Maryland Transfer and Recordation Tax?

Transfer and recordation taxes cover the work it takes to transfer and record property titles. In Maryland, you are responsible for the state and county transfer taxes, as well as the county recordation tax. It is customary for the seller and the buyer to split the total transfer and recordation tax amount equally (if no exemptions apply).

The Maryland state transfer tax rate is 0.5%. See additional county rates below.

Transfer Tax Rate (of purchase price)
State of MD 0.5%
JURISDICTION Transfer Tax Rate (of purchase price) Recordation Tax Rate (per $1,000 of purchase price)
Anne Arundel County 1.0% $7.00
Baltimore City 1.5% $10.00
Baltimore County 1.5% $5.00
Calvert County n/a $10.00
Carroll County n/a $10.00
Charles County 0.5% $10.00
Frederick County n/a $14.00
Harford County 1.0% $6.60
Howard County 1.0% $5.00
Montgomery County 1.0% $8.90 under $500k; $13.50 over $500k
Prince George's County 1.4% $5.50

Are There Any Exemptions to the Transfer and Recordation Tax?

Maryland’s transfer and recordation taxes are among the highest in the region, but there are a number of statutory exemptions at the state and county levels which lead to exemption or reduction in transfer and recordation taxes.

First-Time Homebuyer Transfer Tax Discount

If you are purchasing your primary residence in Maryland for the first time, half of the state transfer tax amount is exempt, making the tax rate 0.25% of actual consideration instead of 0.5%. To qualify for this discount, you need to provide a statement under oath that states you are:

  • Indeed a first-time Maryland homebuyer who will occupy the property as your principal residence, or
  • A co-maker or guarantor of the purchase money mortgage or deed of trust who won’t occupy the property as a principal residence.

Some counties have additional exemptions, so reach out to your county to find its specific program qualifications and application processes.

For additional information on this topic contact Evelyn Miller, Partner, at 202-753-7400.

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